Texas Attorney General Ken Paxton filed a lawsuit against proxy advisory firm Institutional Shareholder Services, Inc. (ISS) alleging violations of the Texas Deceptive Trade Practices Act by prioritizing political agendas over sound financial guidance in voting recommendations. The lawsuit seeks an injunction to stop deceptive practices and civil penalties of up to $10,000 per DTPA violation. This action follows a 2025 investigation into ISS and peer firm Glass Lewis & Co.
The lawsuit seeks an injunction prohibiting ISS from engaging in deceptive and illegal acts under the DTPA, civil penalties of up to $10,000 per violation of the DTPA, and additional unspecified relief.
In-house legal teams at public companies and institutional investors that engage proxy advisory firms should review their vendor agreements with such firms to ensure they include requirements for objective, financial-principle-based voting recommendations that prioritize fiduciary duty over ideological agendas. Clauses should mandate disclosures of potential conflicts of interest, prohibit the imposition of political or social quotas unrelated to financial performance, include representations of neutrality and compliance with the Texas Deceptive Trade Practices Act, and outline remedies for misleading or deceptive guidance. Teams should also review termination clauses for breaches of fiduciary duty or deceptive practices.
Entity
Institutional Shareholder Services, Inc.
Industry
Financial ServicesOfficial Press Release
https://www.texasattorneygeneral.gov/news/releases/attorney-general-ken-paxton-sues-worlds-largest-proxy-advisory-firm-pushing-radical-political-agenda
ISS Petition
https://www.texasattorneygeneral.gov/sites/default/files/images/press/ISS%20Petition.pdf
Texas Attorney General Enforcement Page
https://www.texasattorneygeneral.gov/consumer-protection/privacy
"Institutional Shareholder Services, Inc. (“ISS”)"
"Texas Deceptive Trade Practices Act (“DTPA”)"
"misleading institutional investors and public companies by issuing voting recommendations that prioritize radical political agendas over sound financial principles and fiduciary duty"
"seeks to stop ISS from continuing its deceptive and illegal acts, civil penalties of up to $10,000 for each violation of the DTPA, among other relief"
"/sites/default/files/images/press/ISS%20Petition.pdf"
"May 20, 2026"
$3.0M
Texas Attorney General Ken Paxton announced a settlement requiring Temu to protect Texans’ sensitive personal data from exposure to the Chinese Communist Party and to strengthen product-safety practices. Temu must pay Texas $3 million, comply with data-security requirements backed by a potential $8 million annual penalty, conduct annual independent product testing, and take specified action on products found to contain harmful substances.
$773.0M
Texas Attorney General Ken Paxton announced that a multistate coalition had secured an opioid settlement with Albertsons, which would require the grocery chain to pay more than $773 million nationally once final. Texas and its political subdivisions may receive up to $57.8 million for opioid abatement; the release does not identify privacy violations.
Texas Attorney General Ken Paxton sued Gerber Products Company and Nestlé USA, Inc., alleging that Gerber made deceptive safety and testing claims while its baby food contained dangerous levels of toxic heavy metals. The lawsuit asserts claims under the Texas Deceptive Trade Practices Act; the release does not report a settlement, monetary penalty, or court order.
$1.5M
The Texas Attorney General obtained a judgment holding Rubinsky Roofing LLC liable for 27 violations of the Texas Deceptive Trade Practices Act, including deceptive practices involving older consumers and payment for unnecessary or unfinished repairs. The judgment requires more than $1.5 million in civil penalties, allocates at least $500,000 to consumer restitution, and permanently bars the company and its owner from the practices at issue.
The Texas Attorney General opened an investigation into UnitedHealth Group over allegations that its insurance-benefit administration and patient-care decisions denied Texans medically necessary healthcare. The AG issued Civil Investigative Demands to collect evidence; the release announces no penalty or remedy.
$7.5M
Texas Attorney General Ken Paxton announced a $7.5 million settlement with Tris Pharmaceuticals over alleged misrepresentations about the efficacy of Dyanavel XR, an ADHD drug marketed for children. The release says the company overstated the drug’s efficacy and directed sales representatives to make misleading claims to doctors, including Medicaid providers.